Author Question: Federal regulations make it impossible for rating agencies to drop a company's credit rating more ... (Read 112 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
Federal regulations make it impossible for rating agencies to drop a company's credit rating more
  than two notches at a time in order to prevent panic in bond markets.
 
  Indicate whether the statement is true or false

Question 2

How is preferred stock similar to bonds?
 
  A) Preferred stockholders receive a dividend payment (much like interest payments to
  bondholders) that is usually fixed.
  B) Dividend payments to preferred shareholders (much like bond interest payments to
  bondholders) are tax deductible.
  C) Investors can sue the firm if preferred dividend payments are not paid (much like
  bondholders can sue for non-payment of interest payments).
  D) Preferred stock is not like bonds in any way.


anyusername12131

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

FALSE

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

For a complete list of videos, visit our video library